Subject
The Philippines' economic liberalisation.
Significance
During his third State of the Nation Address (SONA) late last month, President Rodrigo Duterte reaffirmed his wish for the highly protected rice market to be liberalised and for a third major player to enter the telecoms market. For the rice market, bills to shift from the current quota system to a tariff-based one are at various stages in the House of Representatives and Senate. For the third telecoms player, the terms of reference for market entry await finalisation.
Impacts
The Philippines faces a growing threat of WTO action from Australia, Thailand and Vietnam against its rice quota system.
The government will seek to narrow the definition of a public utility, which must be majority locally owned, to exclude telecoms.
Continued high inflation could affect the 2019 midterm elections.